Financial Crime World

Title: Belgium’s Financial Crime Prevention: FATF Report Highlights Areas for Improvement

Brussels - FATF Evaluation of Belgium’s Compliance with Anti-Money Laundering and Counter-Terrorist Financing Recommendations

The Financial Action Task Force (FATF) has published its latest assessment report on Belgium’s adherence to international standards for combating financial crimes. Although significant progress has been made, the report indicates that several areas require further improvement.

Ratings Explanation

Below is a summary of Belgium’s FATF ratings in the 2018 report:

  1. Risk assessment and application of a risk-based approach (R.1): Compliant
  2. National cooperation and coordination (R.2): Compliant
  3. Criminalization of money laundering offenses (R.3, R.4): Compliant
  4. Criminalization and investigation of terrorist financing offenses (R.5): Compliant
  5. Targeted financial sanctions (R.6, R.24, R.33, R.37): Partially Compliant
  6. Non-profit organizations and criminal justice (R.8): Largely Compliant
  7. Financial institution secrecy laws and regulatory authorities (R.9, R.12): Compliant
  8. Customer due diligence (R.10): Compliant
  9. Record keeping (R.11): Compliant
  10. Politically exposed persons (R.12): Compliant
  11. Correspondent banking (R.13): Partially Compliant
  12. Money or value transfer services (R.14): Largely Compliant
  13. New technologies (R.15): Largely Compliant
  14. Wire transfers (R.16): Compliant
  15. Reliance on third parties (R.17): Large Compliant
  16. Internal controls and financial institutions’ foreign branches and subsidiaries (R.18): Large Compliant
  17. Higher-risk countries (R.19): Compliant
  18. Reporting of suspicious transactions (R.20): Compliant
  19. Tipping-off and confidentiality (R.21): Compliant
  20. Designated non-financial businesses and professions (DNFBPs) (R.22, R.23): Large Compliant
  21. Transparency and beneficial ownership of legal persons (R.24): Partially Compliant
  22. Transparency and beneficial ownership of legal arrangements (R.25): Partially Compliant
  23. Regulation and supervision of financial institutions (R.26): Compliant
  24. Powers of financial institution supervisors (R.27): Compliant
  25. Regulation and supervision of DNFBPs (R.28): Large Compliant
  26. Financial intelligence units (R.29): Compliant
  27. Responsibilities of law enforcement and investigative authorities (R.30): Compliant
  28. Powers of law enforcement and investigative authorities (R.31): Compliant
  29. Cash couriers (R.32): Compliant
  30. Statistics (R.33): Large Compliant
  31. Guidance and feedback (R.34): Large Compliant
  32. Sanctions (R.35): Compliant
  33. International instruments (R.36): Compliant
  34. Mutual legal assistance (R.37, R.38, R.39, R.40): Large Compliant

Areas for Improvement

The FATF report suggests several areas where Belgium could improve, such as:

  1. Targeted financial sanctions: The report emphasizes the need for Belgium to effectively implement targeted financial sanctions related to terrorism and terrorist financing.
  2. Legal entities and arrangements: Belgian authorities are encouraged to take a more proactive approach to prevent the misuse of legal entities and legal arrangements.

Conclusion

In summary, Belgium complies with most of the FATF Recommendations to combat financial crimes. However, the report identifies the need for improvement in implementing targeted financial sanctions related to terrorism and terrorist financing and ensuring a more proactive approach to prevent the misuse of legal entities and legal arrangements. The FATF encourages Belgian authorities to address these concerns in the coming months.